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Market Eye
| FII inflows set to breach $ 10 bn-mark | 21/09/2009 03:04:06 | Foreign investment in the Indian stock markets may cross $10 billion-mark by the end of this month as a hefty $ 9.8 billion (Rs 47,674 crore) have already been poured into the bourses by overseas entities so far this year, say analysts.
"FII inflows in the Indian equity market would continue in the coming days and it may cross $ 10-billion level by September-end," said Tarun Sisodia director and head of research, Anand Rathi Financial Services.
Foreign institutional investors (FIIs) have bought shares worth Rs 47,674 crore so far this year, according to the data available with the market regulator or Securities and Exchange Board of India (Sebi).
The infusion of money by overseas investors in shares is a part of their portfolio management in various emerging markets and India is part of that strategy, Sisodia, who is based in Mumbai, said.
So far, in this month, foreign investors have infused over Rs 7,400 crore ($ 1.5 billion), increasing their total net investment, since FIIs were allowed in India, to over Rs 2.78 lakh crore ($65 billion), as per Sebi data.
"FII investment in the local markets may cross $ 10-billion mark by end of this week, as everything is bullish and picture of Indian stock market is very rosy," Delhi-based SMC Global's vice president Rajesh Jain said.
Significantly, so far in 2009, the Bombay Stock Exchange's benchmark index Sensex gained over 73%. Nifty, the benchmark index of National Stock Exchange has also advanced fairly so far this year.
In the long term, the rise in benchmark index would continue, Sisodia added. "The Indian market has seen a huge inflow of funds from overseas investors and crossing $10 billion level is not tough in the current month," Ashika Stock Brokers Research head Paras Bothra said.
After pulling out a hefty Rs 52,986 crore ($11.9 billion) from t FIIs remained net seller of shares for the first two months of the current year.
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